Hawaii has been losing film and TV productions to other states and countries offering stronger incentives, but lawmakers have advanced a bill designed to help the industry thrive here, rather than elsewhere.
Senate Bill 732 Opens in a new tab, which passed out of the House Committee on Finance Wednesday with amendments, would create the Island Film and Media Production Investment Fund, expand tax incentives for hiring local workers and extend support to streaming platforms such as Netflix and Hulu.
With productions dwindling and experienced professionals leaving, stakeholders stress that urgent action is needed to boost Hawaii’s competitiveness in the global entertainment market.
Ricardo Galindez, co-founder of the Island Film Group production company, said major Hawaii- based television productions such as “NCIS: Hawai‘i” and “Magnum P.I.” have been canceled, and Kevin Costner’s “Headhunters,” a surf-themed thriller set in Bali, pulled out due to financial constraints.
“This is the worst year, actually, ever,” said Brian Keaulana, a veteran of film and television productions, noting how the industry benefits other sectors including hotels, car rentals, food vendors and employment.
A 2022 report from the state Department of Business, Economic Development and Tourism found that film and TV productions contribute $1.2 billion to the state’s gross domestic product, pay over $543 million in wages and generate $121.6 million in state tax revenue. Additionally, 4.5 million visitor days are directly tied to productions filmed in Hawaii.
Without intervention, proponents of SB 732 say the state risks losing its status as a prime filming destination, along with its skilled workforce.
That’s why a crowd of more than 400 actors, writers, producers, tech crew members and community supporters of the local film and television industry rallied at the State Capitol Monday to support the measure, and it was standing room only Wednesday at the bill’s hearing before the House Committee on Finance.
DBEDT Director James Tokioka testified at the hearing that “the industry is at a crossroads right now. Prior to ‘NCIS’ leaving Hawaii, our studios were full. We have two huge studios for the size of the capacity that we have productions for, and they’re both vacant right now.”
Galindez warned that if experienced production crew members migrate to other industries or leave, “then we’ve lost the infrastructure we’ve been building over 20 years. There are currently a lot of (crew) people that have not worked for well over a year.”
THE ISLAND Film and Media Production Investment Fund aims to offer financial incentives to keep productions in-state. SB 732 also proposes enhanced tax credits for productions hiring at least 80% local workers, with an additional 5% credit for workforce development.
To keep up with the rise of original content on streaming platforms, the bill would extend the same tax incentives to digital media productions. It also requires productions to consult with local labor unions to ensure fair practices in exchange for tax benefits.
Another key component of the measure would increase the annual tax credit cap currently limiting Hawaii’s competitiveness for large-scale productions. SB 732 also seeks adjustments to the state’s general excise tax, including a reduced rate for film productions and wage-related exemptions that would make filming more cost-effective.
In written testimony on the bill, Film Commissioner Walea Constantinau of the Honolulu Film Office said the recommended updates to Hawaii’s film and television production tax credits would provide a degree of certainty needed to retain existing productions and attract new projects.
These currently include potential second seasons of Fox’s “Rescue: HI-Surf” and “Chief of War,” a new Apple TV+ miniseries set to debut in August that stars Jason Momoa as a Hawaiian warrior during Kamehameha the Great’s bloody campaign to unify the islands. Also recently announced was director Martin Scorsese’s untitled Hawaii-set crime drama film starring Dwayne Johnson, Leonardo DiCaprio and Emily Blunt.
Constantinau estimated the three projects alone would bring in over $300 million in direct spending. She also cited studies showing that production tax credits generate over $120 million in additional state tax revenue through film-related tourism.
INDUSTRY veteran Angela Laprete testified in favor of the bill Wednesday, speaking from her most recent experience as co-producer of “Chief of War,” which for financial reasons shot for 30 days in Hawaii and six months in New Zealand.
“It should have been in Hawaii and the cast should have been (all) Hawaiian,” Laprete said. “We saw so many missed opportunities come out of ‘Chief of War.’ What we’re doing now is being proactive and asking, if it gets picked out for Seasons 2 or 3, what do we need to do to save a show like that and not lose it to New Zealand again?
“I understand, from a business standpoint why films would go there to shoot in New Zealand,” she added. “It’s way cheaper. I’m saying it shouldn’t be, but if it is, we need to have good tax credit — that’s what we need to be competitive. The legislators all think that they’re going to come anyway, and it’s not true.”
Galindez also referenced “The Wrecking Crew,” an action-comedy buddy film starring Momoa and Dave Bautista and set in Hawaii that filmed only 12 days in the state in January before relocating to New Zealand.
He said that just two years ago, film and TV productions spent half a billion dollars in Hawaii, but this year the industry is at a standstill.
“If $20 million has been spent this year, I would be surprised,” Galindez said.
He emphasized that while Hawaii remains a prime destination for some outdoor location shoots — hosting blockbusters such as “Jurassic Park” and “Jumanji” — the lack of soundstages here forces productions to film elsewhere.
“The work that’s done here is location work,” Galindez said. “So if it’s a big movie, they come, they shoot a cool, low-range, do all their exteriors here, but because we don’t have adequate stages, they take all that work to Atlanta, New Mexico or Los Angeles.”
He believes that with more modern soundstages and stronger tax incentives, Hawaii’s film and television industry could become a billion-dollar powerhouse instead of losing projects to other states and countries.
DURING Wednesday’s House Finance Committee hearing, many government officials, representatives of the film and television industry, and members of the general public, offered support for SB 732.
Rep. Kyle Yamashita (D, Upcountry Maui), committee chair, recommended passage of SB 732 with amendments, which was supported by committee members. However, he indicated the updated bill is very different from the version the Senate had sent to the House, so it’s unclear whether it will win final passage.
Yamashita also suggested that perhaps the federal government, which he acknowledged is unlikely, or even the counties should cover some the cost of the film industry incentives, perhaps as much as 40% in the case of the counties.
